Microprocessor maker ARM Holdings plc, which Apple owns shares of, reported fourth quarter earnings Wednesday of £10.1 million (US$14.7 million), a 53 percent jump from the same quarter of 1999.
Revenue increased 58 percent from ’99 to £29.8 million (US$43.4 million), the company said. 50 percent of royalty revenues were derived from the non-wireless market.
Gross margins for the fourth quarter were 88 percent, slightly down from the 90 percent level in the third quarter. This was due to a drop in service gross margins for the quarter reflecting slightly lower margin consulting projects.
Research and development expenses were £7.7 million (US$11.2 million) in the fourth quarter of 2000 representing 26 percent of revenues. Sales and marketing costs for the fourth quarter were £5.9 million (US$8.6 million) compared to £4 million (US$5.8 million) in the third quarter of 2000, reflecting a higher marketing spend.
Income before income tax for the fourth quarter of 2000 was £10.1 million (US$14.7 million) or 34 percent of revenues compared to £6.6 million (US$9.6 million) or 35 percent of revenues in the fourth quarter of 1999.
Apple has been a long-time investor in ARM Holdings and presently owns 31 million shares of the company worth US$709 million at its present value. Apple sold 3.8 million shares of ARM last quarter, worth some US$8.6 million.